HarvestRoad IPO Closes Early
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Australian Web tools developer HarvestRoad has closed off its oversubscribed IPO six days early due to heavy demand.
The IPO raised AUS$7 million (US$4.41 million) including AUS$1 million (US$0.63 million) in oversubscriptions.
It has been one of the brighter performers on the Australian Internet IPO scene, which has been flat for the past three months. HarvestRoad, which won the Best Intranet Product at Internet World 99 in Sydney, has developed server-based applications that are used in Australia and New Zealand.
The company has alliances in place with Maxi Multimedia (80 percent owned by NEC) and Sun Microsystems Australia. Its clients include Telecom NZ, TAFE NSW, the Western Australia Chamber of Minerals and Energy, Public Hospitals in Western Australia and Victoria and other WA State Government Departments.
It plans to use the $7 million raised to fund international expansion with its global alliance partners, including marketing initiatives and the recruitment of additional staff in Australia and overseas. Funds will also be used to enhance product development and to participate in selected national and international trade shows.
The company's sales of AUS$430K (US$271K) in the six-month period to December 31, 1998 are forecast to more than double in the six months to December 31, 1999.
"Our plan was to raise AUS$6 million via sale of 10 million AUS60cent shares, which represents nearly 30% of the company equity," said managing director and founder Grame Barty, a former NATO commander. "We could have easily sought more,however, we have taken what I believe to be a responsible and conservative approach."
Following the IPO, Barty will be entitled to 4.67 million shares and 6.4 million options, while chairman George Bradbury will be entitled to 200,000 shares and 822,222 options.